RECENT TRENDS IN CANADIAN AIRLINE COSTS

This paper reviews the expenses of the two Canadian major scheduled carriers (MSCs) and large charter carriers (CCs). Two types or approaches are included. One is a proportional analysis of the various types of expenses. The other approach is to use a ratio of expenses as a percentage of output, measured in tonne-kilometres performed. In measuring expenses proportionally, it was found that in 1993, both groups spent roughly the same percentage on aircraft ownership costs. (These are aircraft rental, interest and depreciation on flight equipment). The MSCs spent proportionally more on flight crew and less on fuel. In recent years, the MSCs have spent an increasing proportion of their expenses on aircraft, fuel and flight crew. This was driven by increases in their expenditures on aircraft costs, as well as cost cutting measures affecting all "other" costs. Meanwhile, expenditures on these "other" costs, as a percentage of tonne-kilometres performed, dropped in the years 1991 to 1993, particularly for the MSCs.

Language

  • English

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Filing Info

  • Accession Number: 00797115
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Aug 12 2000 12:00AM